Comprehensive Spending Review to hit housing market

October 19, 2010 at 1:15 PM Leave a comment

Property for sale in Oxford

The Chancellor will set out the Government’s four-year public spending plans in the Spending Review at 12:30 on Wednesday 20 October. This announcement will reveal just how extensive the cuts to government spending will be. It’s anticipated that a significant number of public sector job losses will happen over the coming years. This could mean that areas with high rates of public sector employment are likely to take a disproportionately hard knock over the coming months.

In areas where more people are employed by the state, rising unemployment will lead to more homeowners struggling to pay their mortgages as well as dampening demand from buyers, which will put downward pressure on house prices in these areas. House prices are likely to be far more resilient in areas with a smaller share of public sector employees.

Here are areas in England and Wales where house prices are most and least likely to be hit the hardest:

Top 20 areas likely to be most affected

Rank Local Authority Area % of workforce employed in the public sector Current avg. property value 3 year % change
1 Oxford 46 £326,396 -3.61%
2 Denbighshire 45 £146,289 -9.06%
3 Cambridge 43 £306,521 -6.88%
4 Middlesbrough 43 £117,623 -8.53%
5 Hastings 43 £164,255 -5.19%
6 Ceredigion 42 £185,569 -7.53%
7 Canterbury 40 £224,699 -10.11%
8 Stafford 40 £188,162 -8.54%
9 West Dorset 40 £271,555 -9.22%
10 Merthyr Tydfil 39 £94,854 -7.85%
11 Sefton 39 £170,518 -9.66%
12 Liverpool 39 £132,083 -10.21%
13 Greenwich 39 £276,512 -3.64%
14 Taunton Deane 39 £214,130 -9.03%
15 Lewisham 39 £265,822 -3.42%
16 Swansea 38 £151,570 -9.47%
17 Eastbourne 38 £207,468 -7.88%
18 Newcastle upon Tyne 38 £166,890 -9.10%
19 Blackpool 37 £114,300 -14.58%
20 Gwynedd 37 £155,043 -8.70%

Source: Zoopla.co.uk / ONS

Top 20 areas least likely to be affected

Rank Local Authority Area % of workforce employed in the public sector Current avg. property value 3 year % change
1 City of London 4 £468,962 3.14%
2 Crawley 12 £211,235 -5.82%
3 Corby 13 £132,191 -8.61%
4 North Warwickshire 14 £173,686 -9.31%
5 Broxbourne 14 £260,362 -6.00%
6 NW Leicestershire 14 £175,327 -8.16%
7 Bracknell Forest 14 £271,346 -6.80%
8 Hillingdon 15 £289,043 -5.04%
9 Tamworth 15 £151,501 -9.11%
10 Three Rivers 16 £389,658 -5.34%
11 South Holland 16 £152,377 -10.41%
12 Harborough 16 £239,865 -8.49%
13 Slough 16 £202,182 -8.93%
14 Thurrock 17 £186,756 -7.21%
15 Hertsmere 17 £367,525 -5.16%
16 Tower Hamlets 17 £329,663 -3.74%
17 Trafford 17 £239,271 -9.41%
18 Woking 17 £344,991 -5.66%
19 Flintshire 17 £164,483 -9.84%
20 Hounslow 17 £328,716 -5.47%

Source: Zoopla.co.uk / ONS

As always, please feel free to share and use this information, all we ask is that you credit the source as Zoopla.co.uk / ONS and link to either Zoopla.co.uk or blog.zoopla.co.uk. Thank you

Entry filed under: House Prices, Politics. Tags: , , , , .

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